Ride the dividend recovery with City of London Investment Trust

In a year marked by savage dividend cuts, UK equity income investors might finally have some cause for optimism. Link Asset Services’ latest UK Dividend Monitor report says that “some signs of light” are finally appearing for income hunters. This includes companies resuming their dividends, fewer dividend cuts being made, and greater clarity over the state of companies’ operations. But despite Link forecasting a fairly attractive average yield of between 3.3 and 3.6 per cent for the UK market in the next 12 months, challenges remain. So while UK equities could still form part of an income portfolio, it may be best to get exposure to them via a fund with a resilient and selective process.